The Thai Industries Sentiment Index rose to 89.3 in July due to increased demand for food, medicine, and cosmetics, despite ongoing challenges like high household debt and economic concerns.
Thai Industries Sentiment Index Rises
In July, the Thai Industries Sentiment Index (TISI) increased to 89.3, marking the first improvement in four months. This rise is primarily attributed to a surge in demand for essential goods such as food, medicine, and cosmetics, despite the ongoing economic struggles faced by small and medium-sized enterprises. The index saw an uptick from a significant low of 87.2 in June.
Boost in Business Confidence
Chairman Kriengkrai Thiennukul indicated that rising purchase orders and faster government budget allocations have positively impacted business confidence. Additionally, increased spending on state infrastructure is injecting much-needed capital into the economy, particularly benefiting the construction sector.
Caution Amidst Improvement
Despite the positive trends, Kriengkrai cautioned about persistent challenges, particularly concerning high household debt, which currently stands at 91% of GDP. The TISI was derived from a survey involving 1,323 entrepreneurs across 46 industries, highlighting ongoing concerns about the global economy and domestic political stability.
